KEI, BC

Which of the following is not a macroeconomic goal?

• low unemployment

• inflation

• price level stability

The business cycle is made up of how many phases?

• 5

• 4

• 3

• 2

GDP declines during a(an)

• peak

• contraction

• expansion

Economic recovery begins-

• above the trend line

• at the end of a recession (trough)

• at the "boom" period

Which phase of the business cycle is characterized by high levels of economic activity?

• Expansion

• Peak

• Recession

• Trough

In economics, what is inflation?

• The decrease in the general level of prices over time

• A sustained increase in the average level of prices

• The rate at which the value of a currency depreciates

• An increase in the buying power of money

Unemployment is?

• Workers that are actively looking for a job but aren’t working.

• The percent of people in the labor force who want a job but are not working.

• Temporary unemployment or being between jobs.

• Changes in the labor force make some skills obsolete.

Temporary unemployment or being between jobs.

Individuals are qualified workers with transferable skills.

• Cyclical Unemployment

• Structural Unemployment

• Frictional unemployment

Changes in the labor force make some skills obsolete.

These workers DO NOT have transferable skills and these jobs will never come back. Workers must learn new skills to get a job.

• Cyclical Unemployment

• Structural Unemployment

• Frictional unemployment

Unemployment caused by a recession.

As demand for goods and services falls, demand for labor falls and workers are laid off.

This is sometimes called “demand deficient unemployment.”

• Cyclical Unemployment

• Structural Unemployment

• Frictional unemployment